Neoware Systems Inc., formerly HDS Network Systems Inc. (Nasdaq: NWRE), has received top honors from Computing magazine, which named Neoware's NeoStation Network Computer the top network hardware product of the year.

The Neo Station and netOS thin client operating system were given the gold award in the network hardware category at the largest IT industry awards ceremony in Britain, beating out other thin clients, as well as a variety of networking hardware products.

"While rivals were talking about designing NCs, Neoware was adding Java, Netscape Navigator and email facilities to its NeoStation," according to Computing.

The Computing Awards for Excellence, now in their fifth year, are presented annually by Computing, one of the leading information technology and business publications in the UK.

Computing established the Awards for Excellence to give recognition to those technologies, services, skills and achievements that are shaping and driving the IT industry. Nominations for the series of awards presented by the publication are evaluated by three panels of highly respected IT professionals, whose judging criteria cover product functionality and features, price and performance, user testimonials, fitness for purpose, marketing positioning, future proofing and integration capabilities.

"We are very pleased to receive the Computing Gold Award for Excellence," said Ed Callahan, Neoware's president and CEO. "We're especially pleased that Neoware's NCs have been recognized for their contribution to the IT industry, and for the fact that our products are in use today, solving real business problems."

Neoware's NCs offer the industry's most comprehensive thin client solution, with the ability to run virtually any application, including Windows, Java, Internet and legacy applications on almost any type of computer.

While many competitors are still just talking about NCs, Neoware is shipping in volume to important customers such as AARP Pharmacy Services, Burlington Coat Factory and DialAmerica Marketing -- all of which are deploying Neoware NCs in large volumes for mission critical enterprise applications.

The Neoware NeoStation NC is designed for business environments as an easy-to-install and easy-to-administer alternative to the personal computer. According to the Gartner Group, a Network Computer like Neoware's can save up to 39% of the cost of ownership of a PC, or approximately $17,000 over five years for each desktop machine.

About Neoware Systems Inc.

Neoware Systems Inc. of King of Prussia, Penn. (formerly known as HDS Network Systems Inc.) is a leading international supplier of Network Computers and related software, which are cost-effective solutions for the integration and delivery of information and applications to the desktop. The company's netOS operating system is based on an open architecture, incorporating industry standards to enable seamless access to multiple forms of information, including text, graphics, audio, and video, on any type of network.

Neoware has been first-to-market with virtually every new technology in the Network Computer industry because of the standards-based, open design of the Neoware netOS operating system. Neoware was first in the NC industry to supply Java, the Navigator web browser, email, video-conferencing, the ICA protocol and a full suite of terminal emulators.

Neoware netOS, the operating system in Neoware's thin clients, is offered under license to OEMs for quick and easy deployment of application-specific Network Computers for a variety of markets. Contact Neoware Systems by phone: 610-277-8300; fax: 610-275-5739; or Email: info@neoware.com